Added Benefits

First Ag Credit offers several added benefits that allow us to be very competitive in the lending business such as the voluntary advance payment accounts and cash patronage distributions.

Voluntary Advance Payment Accounts

Advance Conditional Payment Accounts are available for operating and short- or intermediate-term loans.

Funds Held Accounts are available for long-term real estate loans.

The maximum amount maintained in the aggregate of all accounts may not exceed the principal loan balance then outstanding on the related loan with respect to long-term real estate loans, or the aggregate of the greater of the principal loan balance or loan commitment or maximum outstanding balance with respect to operating loans.

First Ag Credit shall pay interest on funds maintained in the accounts at rates set by First Ag Credit in its sole discretion from time to time. The interest rate may be equal to the loan rate being paid in connection with the related loan in some cases.

Cash Patronage Distribution *

First Ag Credit has paid over $57 million in cash patronage distributions and stock retirements back to its stockholders since 2001.

The patronage distribution has historically reduced most customers’ net cost of borrowing by approximately 70 basis points, or almost three-quarters of a percent.

* Payment of patronage is subject to the financial performance and condition of the association and future amounts cannot be guaranteed. The amounts shown herein solely reflect the historical performance of this program.